MALTA, N.Y. - GlobalFoundries (NASDAQ: NASDAQ:GFS), a prominent semiconductor manufacturer, has announced the acquisition of a proprietary Power Gallium Nitride (GaN) IP portfolio from Tagore Technology. This strategic move aims to enhance power efficiency in a range of applications including automotive, Internet of Things (IoT), and AI datacenters.
The acquisition includes a suite of high-power density solutions that are expected to support the growing demand for energy-efficient power management, particularly in datacenters that are increasingly reliant on technologies like Generative AI. GlobalFoundries' commitment to large-scale GaN technology manufacturing is further solidified with this expansion of its power IP portfolio, enabling customers to quickly market differentiated products.
A team of experienced engineers from Tagore, dedicated to GaN technology development, will join GlobalFoundries as part of the acquisition. Niels Anderskouv, chief business officer at GF, emphasized the company's dedication to being the foundation for customers' power applications now and in the future.
Tagore Technology has been recognized for developing disruptive GaN solutions for power devices. Amitava Das, co-founder and COO of Tagore, expressed enthusiasm about joining GlobalFoundries to focus on market-leading IP that addresses power design challenges and supports the evolution of power delivery systems in various sectors.
Earlier in February 2024, GlobalFoundries received $1.5 billion in direct funding under the U.S. CHIPS and Science Act, with a portion allocated to enable high-volume manufacturing of critical technologies such as GaN. This funding, combined with Tagore's technical expertise, positions GF to transform AI system efficiency, especially in edge or IoT devices where power consumption is a crucial factor.
Jitendra Chaddah, vice president and India country head at GF, welcomed the Tagore team and highlighted the potential for enhanced technological capabilities, particularly in emerging areas like GaN.
The acquisition is based on a press release statement and is part of GlobalFoundries' ongoing efforts to innovate and provide semiconductor solutions that meet the needs of high growth markets. The company continues to redefine semiconductor manufacturing with its diverse workforce and manufacturing footprint across the U.S., Europe, and Asia.
In other recent news, Entegris (NASDAQ:ENTG), a supplier for the chip manufacturing industry, has secured a preliminary agreement with the Biden administration for a grant of up to $75 million. This federal support is aimed at advancing the development of a new facility in Colorado Springs, Colorado, as part of the broader Chips and Science Act initiative.
The initiative's goal is to increase domestic chip production and reduce reliance on foreign plants. Entegris' project will unfold in two phases, focusing on the production of liquid filter membranes and Front Opening Unified Pods (FOUPS) in the first phase, and enhancing the production of advanced liquid filters, purifiers, and fluid handling solutions in the second phase.
In other developments, GlobalFoundries reported mixed financial results for the first quarter, with a 16% year-over-year decline in revenue to $1.549 billion, attributed to lower shipments and utilization levels. However, the company saw a notable increase in its automotive segment revenue, which grew by 48% and represented 17% of the total revenue.
Despite the decline, GlobalFoundries maintains a positive outlook on its long-term agreements and diversification strategies, expecting revenue to grow sequentially throughout 2024.
InvestingPro Insights
GlobalFoundries' recent acquisition of a Power Gallium Nitride (GaN) IP portfolio from Tagore Technology aligns with real-time data and insights from InvestingPro. As the company embarks on this strategic initiative, InvestingPro Tips reveal that analysts have recently revised their earnings upwards for the upcoming period, indicating a positive outlook on GlobalFoundries' financial performance. Moreover, the company's role as a prominent player in the Semiconductors & Semiconductor Equipment industry is underscored by its commitment to enhancing power efficiency across various applications.
The InvestingPro Data metrics that are particularly relevant to this article include GlobalFoundries' market capitalization of $28.09 billion USD, which reflects the company's substantial presence in the semiconductor space. Additionally, the company's price-to-earnings (P/E) ratio stands at 31.41, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 28.67. While analysts anticipate a sales decline in the current year, GlobalFoundries has demonstrated profitability over the past twelve months and is expected to remain profitable this year, as noted in the InvestingPro Tips.
This financial outlook is significant as GlobalFoundries continues to innovate and expand its technological capabilities, particularly in the GaN sector. With the acquisition of Tagore Technology's IP, GlobalFoundries is poised to address the evolving power design challenges in the semiconductor industry.
For readers interested in further insights, there are additional InvestingPro Tips available on the InvestingPro platform, which can be accessed at https://www.investing.com/pro/GFS. These tips provide a deeper dive into the company's financial health and industry position. To enjoy up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, readers can use the coupon code PRONEWS24.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.